USDC Issuer Circle Taps JP Morgan, Citi for IPO

Circle Internet Financial , the entity behind the USD Coin (USDC) stablecoin, is taking a significant step towards public markets, tapping investment banking giants JP Morgan Chase and Citi to spearhead its IPO.

Sources close to the matter told Fortune that the company is aiming to publicly file its offering documents as soon as late April.

USDC has become a cornerstone of the crypto ecosystem, facilitating trading, lending, and various applications within decentralized finance (DeFi). Its journey to a potential IPO reflects the growing maturity and institutional interest in stablecoins as a fundamental infrastructure layer for the digital economy.

The company previously attempted to go public through a merger with a special purpose acquisition company (SPAC) in 2021. However, regulatory hurdles and a subsequent downturn in the crypto market led to the termination of that agreement in late 2022. Opting for a traditional IPO route underscores Circle's commitment to transparency and long-term growth within the regulated financial landscape. The public filing will offer the first comprehensive insight into Circle's financial health and business operations, information highly sought after by investors and industry observers.

The timing of Circle's IPO is noteworthy, coinciding with a significant rebound in the broader IPO market after a relatively slow 2024. This improved market sentiment could provide a more favorable environment for Circle's public debut. The offering is also expected to be the largest crypto-related IPO since Coinbase's direct listing in 2021.

USDC has experienced remarkable growth recently, with its market capitalization reaching an all-time high of around $60 billion, fueled by a surge in DeFi and crypto trading activity. However, Circle has also faced challenges, including a temporary de-pegging of USDC during the Silicon Valley Bank crisis in 2023. It also trails stablecoin leader Tether's USDT , which currently has a market capitalization of around $144 billion, by a significant margin.

Recent progress in stablecoin legislation within the US Congress, with support from both sides of the aisle and even President Trump, could provide a more certain and supportive environment for Circle's business model. However, the stablecoin arena is becoming increasingly crowded, with new entrants from both the crypto-native space and traditional finance, such as Ripple , PayPal , and potentially Fidelity, all vying for market share.